Primo Brands Cools As Beverage Company Misses Wall Street Estimates

Primo Brands Corporation PRMB shares are trading lower on Thursday after the first-quarter earnings.

The company reported first-quarter revenue growth of 42.1% year-on-year to $1.61 billion, missing the analyst consensus estimate of $1.62 billion.

Adjusted EPS of 29 cents beat the consensus estimate of 23 cents.

Gross margin was 32.3% primarily driven by gross profit attributable to Primo Water due to the merger transaction, as well as lower maintenance costs.

Also Read: Why Budweiser Parent Anheuser-Busch InBev’s Stock Is Rising Today?

Selling, general and administrative expenses increased 49.9% to $327.8 million.

Primo Brands reported a 22.7% increase in operating income to $153.2 million with an operating margin of 9.4%.

Adjusted EBITDA for the quarter improved 56.9% to $341.5 million and the margin expanded 200 basis points to 21.2%.

Primo held cash, cash equivalents and restricted cash of $449.7 million as of March end.

Operating cash flow for the quarter totaled $38.8 million.

On May 1, 2025 Primo Brands announced that its Board of Directors declared a dividend of 10 cents per share, payable on June 17, 2025, in cash, to the holders of record of such common stock of the Company at the close of business on June 6, 2025.

Outlook Reaffirmed: For 2025, Primo sees net sales growth of 3% – 5%.The company expects adjusted EBITDA of $1.6 billion – $1.628 billion.

Primo expects adjusted free cash flow of $790 million – $810 million.

Price Action: PRMB shares traded lower by 2.71% at $31.97 at last check on Thursday.

Read Next:

• Under Armour Faces Tough Road Ahead, Says Analyst

Image: Shutterstock